BATOOL GHAITH (ABU DHABI)
The UAE is at the forefront of a responsible procurement revolution, with organisations across the country accelerating sustainability efforts in response to national climate mandates and global ESG expectations.
Gulf Cooperation Council companies, meanwhile, have seen a 75% increase in sustainability ratings between 2023 and 2025, with the UAE leading the region, accounting for 360 verified ESG ratings alone, according to a whitepaper by EcoVadis.
"This rating is critical because it replaces manual spreadsheets with a global standard. It allows organisations to instantly benchmark their supply chain resilience and compliance," Pierre-François Thaler, Co-CEO of EcoVadis told Aletihad in an interview.
The whitepaper reveals a strategic shift in procurement priorities; what was once a risk-avoidance function is now a central driver of corporate strategy, brand differentiation, and innovation.
"It is no longer just about risk; it is about corporate strategy and national mandates. With the UAE's Climate Law and mandatory reporting coming into force, engaging with the supply chain is the only way to meet these targets," Thaler said.
EcoVadis' methodology, which evaluates companies across 21 sustainability topics within four core themes, environment, labour and human rights, ethics, and sustainable procurement, has provided UAE businesses with a standardised system to benchmark and improve performance.
UAE companies have improved their sustainability scores by an average of 9.6 points, showing the power of verified data and continuous improvement cycles.
He noted that sustainable procurement is becoming a critical tool for managing Scope 3 emissions, which in industries like construction can be eight times greater than direct emissions.
Standardised ratings replace estimates with verified primary data, which allows companies to compare suppliers fairly and track real progress: "Our data shows that investing in supply chain decarbonization can deliver a 3–6x return on investment.”
Government-linked entities in the UAE are already implementing these standards. For example, e& mandates that from 2026, all new suppliers must register on a global ESG platform with verifiable scores and contribute to a 25% reduction in Scope 3 emissions.
Meanwhile, ADNEC is pursuing a "managed transition" model, focusing on capability-building rather than outright supplier exclusion, Thaler said.
Despite leading the region, UAE firms still trail European peers in certain ESG areas, particularly sustainable procurement, where UAE scores average 44.9, compared to 51.1 in Europe. But the rate of progress in the UAE is far faster. The UAE is in a unique catch-up phase.
"Once companies trust in a global standard and use data to benchmark themselves, they improve faster than their global peers," he added.
UAE companies outperform North American and Asia-Pacific firms on average sustainability scores, indicating a strong trajectory toward ESG maturity.